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Trading on margin increases your risk because you can potentially lose more than your initial deposit. However, there are many ways of managing your risk with a range of flexible orders including limits (take profits), stop-loss and one cancels the other (OCOs). All of these orders can be placed online and are free to use.
RBS Spread Trading also offers customers the opportunity to use a controlled risk bet (CRB), allowing you to place a stop order at a predetermined level to guarantee your maximum loss. Therefore you have a known 'worse case scenario' should the market move against you. Because we guarantee the price at which the trade is stopped there are conditions applying to the use of this type of order. Specifically there is a premium charge when opening the trade and also any stop loss can only be placed a minimum number of points/percentages away from the current market price. Where a CRB position is rolled a further premium is chargeable on the rollover. |
